Northrop drops out of tanker competition, leaving Pentagon few options
By Anne Flaherty, APMonday, March 8, 2010
Northrop drops out of tanker competition
WASHINGTON — Northrop Grumman Corp. has decided not to compete against Boeing Co. for the $35 billion the Air Force will spend to buy its own fleet of refueling tankers.
Congressional and industry officials confirmed the decision Monday. It puts the Pentagon on a path to do something President Barack Obama didn’t want to have happen on his watch: pay large amounts of money to a company without undergoing any competition.
The Obama administration had said these kinds of sole-source contracts aren’t a good deal for the taxpayer. But industry insiders say there’s no other company poised to meet the Air Force’s guidelines for the program.
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